How project management can improve delivery and tackle inefficiency

27 Jun 2022 Editorial Team

It’s not just India; construction is globally known to be ineffective. Reports from McKinsey, Autodesk and FMI indicate several parameters for this global inefficiency, leading to a high percentage of cost and time overruns. Only 25 per cent of global projects are completed within deadline and as few as 31 per cent are completed within budget. The deficiency in India is surely larger, on account of construction costs being among the lowest in the world.

Here are the top five reasons for this global inefficiency in construction:
1. Bad data: Leading to 16.5 per cent higher capital costs
2. Investment in technology: (-ve) 55 per cent compared to other sectors
3. Resource productivity: (-ve) 23 per cent compared to 1990
4. Subcontractor centricity: Delivers 80 per cent of construction value
5. Onsite fabrication: Contributes to over 99 per cent of the value delivered.

To add to this, material costs have been volatile, with 62 per cent of inflation (since 2000) contributed by construction and mining.

Building information modelling (BIM) is globally pegged to improve project delivery. Its implementation, however, is stunted owing to lack of widespread understanding. At Clancy Global, we have successfully implemented the BIM framework to deliver projects faster and cheaper.

Further, this article elaborates upon the four nodes that have enabled successful implementation of the BIM framework.

To read the full version, CLICK HERE.

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